The world of the blockchain offers many possibilities for financial movements and actions. These include cryptocurrency exchanges, FT tokens and NFTs.
The latter are non-fungible tokens, i.e. tokens with a unique identity.
In recent years, their value and trend on the markets has skyrocketed. This is thanks to the big brands and celebrities who use them or produce their own.
From crypto-kittens to the most famous brands, the types of NFT are many.
But more specifically, what are NFTs? How are they created? How to buy an NFT and where to manage them?
Let’s find out in this new Moby Dick academy article dedicated to DeFi.
What are NFTs and how are they created?
NFTs, non-fungible tokens, are non-fungible assets, i.e. not exchangeable for an identical object. They have unique characteristics that are registered on BlockChain nodes via smart contracts.
Owned on the DeFi Wallet, they can be a photo, a painting, a song, a document, a screenshot, etc.. Anything, in short, that is made digital and has its own identification code.
NFT technology was born between 2012 and 2013 with coloured coins, tokens on the blockchain, which represented real possessions.
Then, in 2014, the first platform was founded to create its own personalised tokens: Counterparty. This expanded, giving rise to crypto-art.
In 2021, the fad caused the selling price of some NFTs to skyrocket, giving them the ultimate notoriety among blockchain traders.
To this day, there is a lot of movement around NFTs, even involving news stories. An example? The couple who decided to get married, exchanging their NFT rings via their wallets, with a change of holder.
Also, the birth of Kingship, the first band made up exclusively of NFTs that has just signed a contract with Universal.
How to buy NFTs and how do they generate them?
But how to make NFTs and how to buy them? There are plenty of platforms that allow you to create NFTs in just a few steps.
The most widely used is Opensea, which requires the use of an Ethereum wallet to create new NFTs or access the platform’s marketplace.
All you need to do is have a png, document or other, upload it to the desired platform, assign a base value and generate the NFT. This will be registered on the blockchain via smart contract and associated to your wallet.
You may decide to auction it, with a value that may increase or decrease, depending on the market.
Movements, in this case, are managed via cryptocurrencies and each NFT will have its own history of ownership changes. This ensures the security of the transaction, as each ownership is verifiable on the blockchain.
The moment you win an NFT, you will owe a fee to the platform that facilitated the mintage. This fee is also influenced by market movements and the platform chosen.
A fairly large amount of crypto-art is being sold and bought via NFTs in recent times. But purchases of digital real estate, such as those found in the Metaverse, are also available.